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Financial intelligence for Asia's healthcare markets
 
 
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13/09/2017

Markets in Asia followed Wall Street higher today as fears about North Korea and damage from Hurricane Irma abated. A stronger US dollar saw both the Nikkei and the ASX make steady gains, though there was weakness elsewhere. The Hang Seng and the SGX declined. “Profit taking could be one reason behind this technical pullback. Technically, the Hang Seng Index is facing strong selling pressure at 28,000 points – a psychological resistance level,” explained Margaret Yang Yan at CMC Markets in Singapore. Chinese markets traded more or less flat.
 
Sisram Medical, a Israeli subsidiary of Shanghai Fosun Pharmaceutical, and which manufactures medical aesthetics devices, has priced its HK$977 million (US$125 million) IPO on the Hong Kong Stock Exchange at the low end of guidance. It sold 110 million shares or around 25% of its total share capital at HK$8.88 per share. The first day of trading is 19 September. Joint sponsors are CICC and Jefferies.
 
Hong Kong-headquartered healthcare services company UMP Healthcare has announced that the public float of the company has fallen below the minimum prescribed percentage of 25% of the total issued share capital. “The company undertakes to procure that appropriate steps will be taken to ensure restoration of the minimum prescribed percentage as soon as reasonably practicable in accordance with the listing rules,” it said, though it admitted that it has not yet determined any definitive proposal.
 
In a scandal which has dominated the Indonesian press since the weekend, shares in Indonesian hospital operator Mitra Keluarga have crashed 5.2% this week after a baby girl died when she was denied paediatric care at one of its hospitals. Her parents claim that it is because they had been unable to pay the hospital’s upfront treatment fees. Its shares were last see flat at Rp2,000 (US$0.15).
 
As part of an internal reorganisation, IHH Healthcare, Asia’s largest healthcare company, has merged its Bulgarian subsidiaries, Acibadem City Clinic EAD and Tokushukai-Sofia. IHH said that this was to streamline Acibadem group’s structure and management, and that it would have no material effect on IHH’s earnings, net assets or gearing.
 
HLIB Research remains cool on medical rubber glove manufacturer Hartalega Holdings after a visit to its new manufacturing complex in Sepang. “Whilst we like Hartalega for its leadership position in the nitrile glove market; high ROE and net profit margins amidst a favourable operating environment, we believe the share price has run its course and these fundamentals are fully reflected at the current share price,” writes analyst Sheikh Abdullah. He maintains his “hold” and target price of M$7.04 (US$1.67). Hartalega shares were last seen down 2.46% at M$6.54.
 
Maybank Kim Eng is positive on women’s healthcare specialist Singapore O&G (SOG) in a detailed new report on the unrated company. “Based on consensus estimates, SOG trades at 24x/20x FY17E/FY18E P/E. This is at a slight discount of 8%/20% vs Singapore peers’ PE of 26x/25x. On the other hand, SOG offers a respectable 4.0% dividend yield for FY17E, which is the second-highest among Singapore’s peers, which generate 0.5%-5.0% dividend yield,” writes analyst John Cheong.
 
Retirement village operator Arvida is to acquire three villages in New Zealand – Mary Doyle Lifecare, Strathallan Lifecare and 50% of Village at the Park Lifecare – from Hurst Lifecare for approximately NZ$106 million (US$76.7 million).
 
Oceania Healthcare, New Zealand’s third largest retirement village operator, has acquired a site adjacent to its Eden facility in Mt Eden, Auckland. Financial terms have not been disclosed.
 
Golden Equator, a group of five independently managed companies based in Singapore, has launched the Korea-Singapore Healthcare Incubator together with Korean regulatory and clinical research provider C&R Healthcare Global. The incubator will help 10 to15 Korean companies expand into Singapore and southeast Asia over the next few months.
 
In people news, Australian medical software developer Medadvisor has appointed two regional advisors to accelerate its global expansion strategy. Jamal Butt and Keith Kiarsis will lead MedAdvisor’s market entry strategies into the UK and US, respectively.
 
In our must-read for the day, Albert Wong argues that biomedical technology should not be ignored and explains how the Hong Kong Science and Technology Parks Corporation can support it.

Posted on: 13/09/2017 UTC+08:00


News

Medical diagnostic imaging services provider Capitol Health has said that it expects to return to profitability in the next financial year and has upgraded its outlook for the year.
Paragon Care, a leading distributor and manufacturer supplying medical equipment to hospitals, has said that it is “targeting strong growth in 2018 across all key metrics”.
Malaysian medical glove manufacturer Supermax Group has reported a 42.8% jump in Q1 profits to M$27.9 million (US$6.8 million) on revenues that 16% to M$312 million.
At its annual general meeting, international pathology, imaging and medical centres operator Sonic Healthcare reaffirmed guidance for the year. Chief executive Colin Goldschmidt said that the first quarter of the 2019 financial year confirmed expectations that underlying earnings would grow between 6% and 8% on a constant currency basis.
It has been another great quarter for China Cord Blood Corporation (CCBC), the country’s largest provider of cord blood storage and ancillary services. For the second quarter in a row, profits more than doubled. They came in at US$10.2 million.
New Zealand-based medical device manufacturer Fisher & Paykel Healthcare has reported a steady set of first half figures. Profits were up 4% to NZ$81.3 million (US$55.3 million) on revenues that rose 8% to NZ$458.4 million.
Retirement village operator Arvida has reported a 14.5% slump in profits for the first half of the year to NZ$14.5 million (US$9.9 million). At the same time, revenues were up 27.9% to NZ$60 million.
Medical device manufacturer Microport Scientific Corporation plans to acquire the cardiac rhythm management (CRM) business of London-based medical device manufacturer LivaNova for US$190 million.



Analysis

The promise of a bottom in Singapore’s office market has caused its ranking as an investment market to soar from next-to-bottom last year to third in this year’s “Emerging Trends in Real Estate Asia Pacific 2018” report, a real estate forecast jointly published by the Urban Land Institute (ULI) and PwC.
Kamal Brar, vice president and general manager of Asia Pacific for data software company Hortonworks, looks at how data analytics can provide effective and affordable healthcare in Singapore.
The latest Sun Life Financial Asia Diabetes Awareness Study reveals an alarming knowledge gap in diabetes. A third of Asian women who are or were pregnant in the past three years are unaware of the risk of developing gestational diabetes in pregnancy, while one in seven births in Asia is currently affected by gestational diabetes.
Gan Kim Yong, Singapore’s minister for health, explains why the private sector needs to get behind the National Electronic Health Record System.
Business leaders in Asia Pacific’s healthcare industry are showing urgency in embracing the fourth industrial revolution, according to the Microsoft Asia Digital Transformation Survey. More than three-quarters of them believe that they need to transform to a digital business to enable future growth and yet only a quarter said that they have a full digital strategy in place today.
An agreement for an additional US$15 million funding from the World Bank will be used to expand health and nutrition coverage in the Lao People's Democratic Republic. It is expected to benefit more than 1 million people across 14 provinces.
Bart Van den Mooter, CEO of the TforG Group, looks at the drivers behind the rapid growth in Asia’s medical tourism market.
The ambitious healthcare agenda under Moon Jae-in's liberal presidency will seek to expand national health insurance reimbursement and limit the burden of excessive medical costs, while overhauling the healthcare system. BMI Research looks at the winners and the losers in the presidential agenda.


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